Ryanair Holdings Plc, which launched its customer loyalty program just eight months ago, announced today that it is closing the program due to higher-than-expected costs.
According to Friday’s statement, over 55,000 passengers joined the annual “Prime” membership model, generating €4.4 million in revenue. However, the discounted ticket benefits provided to members resulted in approximately €6 million worth of perks being claimed over the eight months.
Ryanair Marketing Director Dara Brady said, “This trial has cost more than it earned. The revenue from memberships does not cover the time and effort we spent preparing special seat promotions each month for 55,000 Prime members.”
Ryanair emphasized that it intends to offer discounts to all customers, rather than restricting them to Prime members only.
Earlier this year, CEO Michael O’Leary expressed skepticism when launching the program but expected membership fees to generate €2.5 million in revenue. In May, during a discussion with analysts, O’Leary stated, “I think the only mistake was pricing Prime too low. We probably should have charged around €99.”
Competitor Wizz Air also offers a membership program called “All You Can Fly” for €499, which recently welcomed new subscribers.
Ryanair said existing Prime members can continue to enjoy all benefits for the remainder of their 12-month subscription, but no new members will be accepted. “We thank the 55,000 members who participated in the Prime trial over the past eight months and assure them that they can continue using all discounts and seat perks for the remainder of their membership,” the company added.
Ryanair, Europe’s largest airline by passenger numbers, also noted that it can expand capacity thanks to accelerated aircraft deliveries from Boeing and aims to carry 207 million passengers in the fiscal year ending in March.
